Home Office Accounting Officer - gov.uk · departments and agencies. Ministers also look to the department’s Accounting Officer to delegate within the department to deliver the

Home Office

Accounting Officer

System Statement

September 2018

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Accounting Officer System Statement

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Contents

Scope of my Accounting Officer System Statement 4

Accounting Officer Responsibilities 4

Role of Ministers 5

Home Office Responsibilities 6

Governance 8

Audit and Assurance 14

Information Management 15

Parliamentary Obligations 15

Performance Management Information 16

Relationships with Arm’s Length Bodies 17

Local Funding Arrangements 20

Police 20

Displaying regularity and propriety 22

Achieving Value for Money 24

How am I assured the System is working? 26

Transparency 28

How the System responds to failure? 30

Fire 31

How am I assured the System is working? 32

Transparency 34

Third Party Delivery Partnerships 36

Grants to Private and Voluntary Sector Bodies 37

Major Contracts and Outsourced services 39

Investments, Joint Ventures and Other Assets 42

Annex A - Home Office Arm’s Length Bodies 43


4

Scope of my Accounting Officer System Statement

Accounting Officer Responsibilities

I am the Principal Accounting Officer for the Home Office. This System Statement sets out

all the accountability relationships and processes within my Department, making clear who

is accountable for what at all levels of the system.

My Department has policy responsibility for Homeland Security, Public Safety and

Borders, Immigration and Citizenship.

The Home Secretary and other Departmental ministers have a duty to Parliament to

account, and be held to account, for the policies, decisions and actions of this Department

and its agencies. They look to me as the Department’s Accounting Officer to delegate

within the Department to deliver their decisions and to support them in making policy

decisions and handling public funds.

As Accounting Officer, I am personally responsible for safeguarding the public funds for

which I have been given charge under the Home Office Estimate. Where I have appointed

additional Accounting Officers, their responsibilities are also set out in this system

statement.

This statement covers my core Department, its arm’s length bodies and other arm’s length

relationships. It describes accountability for all expenditure of public money through my

Department’s Estimate, all public money raised as income, and publicly owned assets for

which I am responsible.

This system statement helps me ensure that I am fulfilling my responsibilities as an

Accounting Officer, in accordance with the Treasury’s guidance set out in Managing Public

Money.

This system statement describes the accountability system which is in place at the date of

this statement, and which will continue to apply until a revised statement is published.

Sir Philip Rutnam

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/454191/Managing_Public_Money_AA_v2_-jan15.pdf

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/454191/Managing_Public_Money_AA_v2_-jan15.pdf


5

Role of Ministers

The Ministerial Code sets out the general principle that ministers have a duty to Parliament

to account, and be held to account, for the policies, decisions and actions of the

departments and agencies. Ministers also look to the department’s Accounting Officer to

delegate within the department to deliver the minister’s decisions and to support the

minister in making policy decisions and handling public funds.

Further information regarding the roles of ministers can be found on the Home Office

website.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/579752/ministerial_code_december_2016.pdf

https://www.gov.uk/government/organisations/home-office

https://www.gov.uk/government/organisations/home-office


6

Home Office Responsibilities

The Home Office is the lead government Department for immigration and passports, drugs policy, crime, fire, counter-terrorism and policing.

Figure 1 – Home Office policy and operational delivery

https://www.gov.uk/government/organisations/home-office/about


7

Figure 2 – How the core Department is organised


8

Governance

1. The Department and the Home Office sector as a whole is complex. Current top-level

governance arrangements aim to reflect that, placing explicit emphasis on subsidiarity,

and addressing the unusual blend of substantial delivery at arm’s length, and policy

sponsorship, alongside major in-house operations and high political salience

throughout.

2. At its most senior level, corporate governance within the Department rests with the

Departmental Board, chaired by the Home Secretary, and the Executive Committee

(ExCo, which manages the Whitehall Department and its directly-managed operations).

3. On 1 August 2017, ExCo agreed a new supporting governance structure to ensure that

the Department has the most appropriate arrangements in place to help the

Department meet its objectives. This refreshed structure is designed to make the

Department’s governance as focused and effective as possible, to create an

environment that encourages clear accountability and delegation, and to foster

behaviours that encourage feedback and collaboration. This structure is illustrated as

Figure 3 below.

Figure 3 - Home Office governance structure

System Governance

4. This comprises the three systems within the Home Office: the Homeland Security,

Public Safety, and Borders, Immigration and Citizenship systems. Applied at system

level, the principle of subsidiarity means issues which impact upon the entire system,

rather than one operational command or the entire sector, are addressed at system

level.

Homeland Security

• The Office for Security and Counter-Terrorism (OSCT) implements and delivers the

counter-terrorism strategy (CONTEST) and the Serious Organised Crime (SOC)

strategy. Funding is allocated centrally and is governed by the OSCT Board.


9

• Police and Crime Commissioners (PCCs) receive funding to support counter-

terrorism policing. £757m was allocated to support counter-terrorism policing in

2018-19, including £29m provided for armed policing.

Public Safety System

Policing

• Directly elected and locally accountable Local Policing Bodies including Police and

Crime Commissioners (PCCs), the Mayor’s Office for Policing and Crime for the

Metropolitan Police Service area and the Mayor for Greater Manchester for the

Greater Manchester Police area, and the Common Council for the City of London

Police are receiving approximately £11.3bn for policing in 2018/19 (£7.7bn through

Central Government grants and around £3.6bn from Council Tax Precept).

Governance responsibility for how this funding is spent is managed through PCCs

who, along with chief constables, must have regard to statutory guidance such as

the Financial Management Code of Practice (FMCP). The Home Office also has a

role to play in supporting the police to be effective, by investing in the right

capabilities, for example. By way of illustration, the Home Office are providing an

additional £0.9bn of police funding in 2018/19 police funding to support national

programmes (e.g. major technology programmes such as Airwave and the

Emergency Services Network), which have their own governance structures, and

the allocation of the Police Transformation Fund; the latter is overseen by the Police

Reform and Transformation Board, with final allocations made by Ministers.

Fire & Rescue

• Fire and Rescue services receive approximately £2.2bn per annum (£920m through

the Local Government Finance settlement and around £1.3bn from Council Tax

Precept). Governance responsibilities for how this funding is spent is managed

through Fire and Rescue Authorities. The Home Office is responsible for fire policy

and is delivering a reform programme to support services to become more effective,

efficient and professional including through the expansion of the role of the

inspectorate to include fire inspection, and the creation of a professional standards

board, as well as enabling police and crime commissioners to take on local fire

governance where a local case is made. Fire governance has been taken on in two

areas to date, creating a Police, Fire and Crime Commissioner in both Essex and

Staffordshire.

Crime, Policing and Fire Group (CPFG)

• CPFG is a Group within the Department. Its funding is allocated centrally and

governed through the CPFG board.

Borders, Immigration and Citizenship System

• Funding is allocated centrally from the Department’s overall budget to each of the

four operational commands which make up the Borders, Immigration and

https://www.gov.uk/government/publications/financial-management-code-of-practice


10

Citizenship System (BICS). Governance is carried out through the Borders,

Immigration and Citizenship (BICS) Board.

• The Second Permanent Secretary is the Additional Accounting Officer for the

Borders, Immigration and Citizenship System. Her appointment as Second

Permanent Secretary carries with it the responsibility of Additional Accounting

Officer for borders, immigration and citizenship policy and operations within the

Home Office.

• As Additional Accounting Officer, she must be able to assure Parliament and the

public of high standards of probity in the management of public funds. This includes

decision-making and financial management assurance when considering,

promoting and safeguarding regularity, propriety, affordability, sustainability, risk

and value for money across the public sector; and accounting accurately, and

transparently, for the Borders, Immigration and Citizenship system’s financial

position and transactions.

Operations

• This comprises the individual operational commands, e.g. Border Force,

Immigration Enforcement, which forms part of the Border, Immigration and

Citizenship system.


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Financial Governance

5. All government departments are subject to a number of legal and financial obligations.

These include:

Adherence to Government Spending Controls

6. Spending controls help government departments to reduce wasteful expenditure and

thereby support reducing the fiscal deficit. Details of these controls can be found at:

Cabinet Office Spending Controls

Financial Management

7. The standards below apply to all civil servants, especially those working in the

Government Finance function, and provide a base level that they must comply with.

Some of these standards, such as Managing Public Money and the Green Book,

Magenta Book, Aqua Book and Better Business Case guidance apply to all civil

servants, staff in ALBs and anyone employed to work in or with central government

including contractors.

Managing Public Money

The Green Book

The Magenta Book

The Aqua Book

Consolidated Budgeting Guidance 2017-2018

Government Financial Reporting Manual 2017-2018

Supply Estimate Guidance Manual

Public Sector Annual Reports: Sustainability Reporting Guidance

Financial Resources

8. The Home Office developed a strategic plan at the Spending Review based on

investment in large-scale transformation in order to deliver efficient services in a digital

age. Financial allocations align with the Home Office Settlement, agreed through the

Spending Review 2015 and subsequent amendments via the Main and Supplementary

Estimates.

9. The allocation for the Public Safety system includes grant funding provided to Police

Forces. Homeland Security includes funding provided to the Police in relation to the

UK’s Counter-Terrorism strategy. The allocations for the Borders, Immigration and

Citizenship system are shown net of income received for services (notably immigration

and passports).

https://www.gov.uk/government/publications/cabinet-office-controls/cabinet-office-controls-guidance-version-40

https://www.gov.uk/government/publications/managing-public-money

https://www.gov.uk/government/publications/the-green-book-appraisal-and-evaluation-in-central-governent

https://www.gov.uk/government/publications/the-magenta-book

https://www.gov.uk/government/publications/the-aqua-book-guidance-on-producing-quality-analysis-for-government

https://www.gov.uk/government/publications/consolidated-budgeting-guidance-2017-to-2018

https://www.gov.uk/government/publications/government-financial-reporting-manual-2017-to-2018

https://www.gov.uk/government/publications/supply-estimates-guidance-manual

https://www.gov.uk/government/publications/public-sector-annual-reports-sustainability-reporting-guidance-2015-to-2016


12

10. The Department has plans to increase non-tax income for Government over the

Spending Review period, through a combination of fee increases for immigration

products and the introduction of premium services with the intent to move towards a

system which is fully-funded by users.

11. The decision to leave the EU has significant implications across all the Home Office

systems, particularly Borders, Immigration and Citizenship. The Department is working

through potential impacts to finance and workforce plans

Figure 4 - Financial resources forward look Resource (£m)

18-19 19-20

Homeland Security 785 768

Public Safety 8,728 8,835

Border, Immigration and Citizenship 413 269

Enablers 539 428

Total 10,381 10,302

Note: Figures match budget delegations that include changes at the Main Estimate following the Spending Review

Capital (£m)

18-19 19-20


Public Safety 153 140


Enablers 39 99

Total 440 432

Note: Figures match budget delegations that include changes at the Main Estimate following the Spending Review.

Income (£m)

18-19 19-20


Public Safety 291 261

Border, Immigration and Citizenship 2,004 1995

Enablers 186 146

Total 2,680 2600

Note: Figures match budget delegations that include changes at the Main Estimate following the Spending Review

ODA (£m)

18-19 19-20

Homeland Security - -

Public Safety 16 17


Enablers - -

Total 404 406


13

* The Department’s overall Spending Review settlement, and the allocation that falls within the Home

Secretary’s remit, includes funding for the National Crime Agency (NCA). Funding for the NCA is not

included within the above numbers and amounts to £377m/£374m Resource and £50m/£50m Capital in

2018-19 and 2019-20 respectively.

Portfolio Governance and Assurance

Transformation

12. Accountability for delivery of transformation plans lies with the Director General of each

business area, or the Chief Executive of Arm’s Length Bodies. Strategic direction is

provided for transformation by the Strategic Capabilities Board, which is responsible for

identifying the strategic capabilities which the Sector needs, with executive oversight

through the Departmental Board and Executive Committee. At a working level,

governance is provided by the Transformation Portfolio Board which operates at

director-level.

Capital Programmes

13. The Portfolio, Investment and Change Committee (PIC) is the Department’s investment

oversight board. PIC's role is to:

• consider investment approval requests for projects in the Home Office portfolio

• review the structure and health of the Home Office portfolio and agree change

funding

14. PIC investment approval is required for projects that have a whole life cost of £5m or

more and/or projects that require Cabinet Office, or HM Treasury approval.

15. Accountability for delivery of major and mission critical capital programmes is provided

through formally appointed Senior Responsible Owners. Portfolio boards, such as the

Border Systems Portfolio Board, provide strategic oversight, with formal governance

through programme and project boards. Investment approval for all programmes and

projects with a whole-life cost of over £5m is provided through PIC. Supporting

governance is provided at a working level through the Business and Technical Design

Authorities and Commercial Approvals Board.

Project and Programme Assurance

16. The Department has an integrated approach to risk and assurance, based on the ‘three

lines of defence’ model, as set out below. An integrated programme of assurance is in

place, including, project assurance reviews, and a wide-ranging audit programme.

Figure 5 - Departmental Programme Assurance

https://www.gov.uk/government/publications/home-office-major-projects-appointment-letters-for-senior-responsible-owners


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Audit and Assurance

17. Corporate governance in the Home Office goes hand in hand with assurance; the

structures provided on previous pages provide regular touch points for discussions on

business performance and progress against plans, as well as a mechanism for

escalation of issues where required.

18. In parallel to the Department’s governance structures, there are the “three lines of

defence” that are used to describe the various types of audit and assurance activity

that take place throughout the organisation. At the most local level there are checks

made by managers, quality control mechanisms, performance management

conversations etc. At the next level, there are operational assurance activities that may

look across whole business areas, as well as thematic “deep-dive” type activities that

may be commissioned by the Executive Committee or a sub-board to look at a

particular subject in detail. Lastly there are the formal audits and reviews, which may

involve public scrutiny via Parliament.

Figure 6 - 3 lines of defence

FIRST LINE

SECOND LINE

Reporting Quarterly Review Capability map

BDA, TDA, CAB Baselines & Change Control PPD

THIRD LINE

Assurance Gateways GDS Internal Audit

IPA CCS HMT

Risk: Three lines of defence on Home Office PortfolioP

IC L

EV

EL

PR

OJE

CT

S A

ND

PR

OG

RA

MM

ES

Public Accounts

Committee

NAO

PIC

ExCo

AO

Ministers

Project and Programme Management

Business Area Portfolio Management


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Information Management

19. The Department is required by law to comply with relevant legislation governing

information management, which includes the Freedom of Information Act 2000, data

protection legislation1 and the Public Records Act 1958. These place obligations on the

Home Office, when applicable, to provide timely responses to information requests

received and to requests from data subjects for the data the Department holds on

them, when the Department is the controller of the personal data. Home Office records

also need to be appraised and either kept under a legal instrument, destroyed or

transferred to The National Archives in line with the 30 Year Rule, which is currently

reducing to a 20 Year Rule by 2023.

Parliamentary Obligations

20. The Department’s Parliamentary team works to ensure the Home Office’s

Parliamentary obligations are discharged effectively in a timely manner.

21. Parliamentary business which requires response includes:

• Written Parliamentary Questions (PQs);

• Urgent Questions;

• Private Notice Questions (in the Lords);

• Written Ministerial Statements;

• Oral Questions;

• Oral Statements; and

• Committee Reports.

22. The Parliamentary team also arranges the parliamentary passage of Affirmative

Statutory Instruments.

1 General Data Protection Regulations EU 2016/679 and the Data Protection Act 2018

http://www.legislation.gov.uk/ukpga/2000/36/contents




http://www.nationalarchives.gov.uk/


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Performance Management Information

Measuring Performance

23. Performance is managed across each of the three Home Office systems and is

primarily overseen by the Departmental Board chaired by the Home Secretary and the

Executive Committee chaired by the Permanent Secretary. There are different

governance arrangements in place to manage each system and depending on whether

the performance concerns policy delivery, operational delivery or efficient enabling

functions.

24. Key performance data is published regularly on the GOV.UK website at:

https://www.gov.uk/government/organisations/home-office/about/statistics

25. Information about what the Department measures and what the Department achieves

is also published annually in the Annual Report and Accounts. The report for 2017-

2018 is available at Home Office Annual Report. The annual report also includes the

Accounting Officer’s Governance Statement.

26. In addition, a variety of other data sets and annual reports are published by arm’s

length bodies, by local authorities and by the Office for National Statistics.

https://www.gov.uk/government/organisations/home-office/about/statistics

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/727179/6_4360_HO_Annual_report_WEB.PDF


17

Relationships with Arm’s Length Bodies

27. The Department is applying the principles and standards set out in the Cabinet Office

code of good practice on Partnerships between departments and arm’s-length bodies

to its relationships with ALBs. The Department has assessed itself against the Code,

taking into account views from its ALBs. This analysis identified no gaps as such, but

did bring a focus to a number of areas where the Department can strengthen its

sponsorship operations. These have been incorporated into an Action Plan for

improvement or, where appropriate, will be followed-up in direct discussions with the

particular bodies concerned. The Department has established the Home Office

Sponsorship Unit to be a Centre of Excellence to ensure its approach is as strong and

consistent as possible. The accountability arrangements for the Department’s ALBs,

according to their classification, are:

Non-Departmental Public Bodies (NDPBs)

28. NDPBs may receive a grant-in-aid and may be delegated control totals from the

Department. They may charge for their services.

29. Executive NDPBs usually have an independent Board and an Accounting Officer,

normally the Chief Executive or Director General, and a sponsor team in the core

Department. Executive NDPBs are usually subject to audit by the Government’s

internal auditors and to external audit by the National Audit Office. The Executive

NDPBs publish their Annual Reports and Accounts.

30. Revenue delegation to the Disclosure and Barring Service (DBS) and to the Security

Industry Authority (SIA) is of a control total as they fund their entire non-capital budget

from the fees they charge. These bodies report on their fees in their annual reports.

31. The Gangmasters and Labour Abuse Authority (GLAA) charges fees only for its

licensing activity. It also receives a contribution from the Northern Ireland Office. GLAA

reports on both fees and the Northern Ireland contribution in its annual report.

32. The Independent Office of Police Conduct (IOPC) - previously known as the

Independent Police Complaints Commission (IPCC) - is an NDPB, sponsored by the

Home Office, that carries out its investigations and decisions associated with its

investigations independently of the Home Office or the police. The Government

reformed the governance arrangements of the IPCC, which was renamed as the IOPC

on 8 January 2018. IOPC has a new single head, the Director General, who has

responsibility for all investigative decisions. Corporate governance and scrutiny is

provided by a unitary board consisting of a majority of non-executives, led by a Senior

Independent Director. The Director General is the Accounting Officer.

https://www.gov.uk/government/publications/partnerships-with-arms-length-bodies-code-of-good-practice

https://www.gov.uk/government/organisations/disclosure-and-barring-service

https://www.sia.homeoffice.gov.uk/Pages/home.aspx

https://www.sia.homeoffice.gov.uk/Pages/home.aspx

http://www.gla.gov.uk/

https://www.ipcc.gov.uk/


18

33. The Office of the Immigration Services Commissioner (OISC) is led by the Deputy

Commissioner while the Commissioner post is vacant. In the absence of a

Commissioner, the Deputy Commissioner has been designated as its Accounting

Officer. The OISC is a corporation sole, which means it does not have a Chair or Chief

Executive. Oversight of the OISC is provided by the sponsor team and an audit and

risk committee. The OISC is fully funded by grant-in-aid from the Home Office with

registration fees charged by the OISC remitted to the Home Office.

34. Advisory NDPBs, Commissioners, Regulators, Panels and appointments may comprise

individual appointments to a particular role, or a number of members appointed to carry

out a role, one of whom may be appointed Chair. They may be supported by a

secretariat provided by the Department. Expenditure on behalf of these bodies is

managed as part of core Departmental expenditure.

• Her Majesty’s Inspectorate of Constabulary and Fire & Rescue Services

(HMICFRS) comprises several HM Inspectors of Constabulary and HM Inspectors

of Fire & Rescue Services who are Crown appointments. HMICFRS is delegated a

budget and control total which forms part of the core Departmental expenditure. The

Home Office Permanent Secretary is the Accounting Officer for HMICFRS.

HMICFRS lays its annual Inspection Programme and framework before Parliament.

The inspectorate’s 2018-19 inspection programme and framework set out changes

it will make to carry out its PEEL (police efficiency, effectiveness, legitimacy)

inspections in a more integrated way and focus activity on areas that present the

greatest risk. HMICFRS makes an annual statutory report to the Secretary of State,

which is also laid before Parliament, on the efficiency and effectiveness of policing

in England and Wales, and carries out thematic inspections on issues (e.g. hate

crime, fraud) which impact across the policing landscape.

• The Independent Chief Inspector of Borders and Immigration is appointed by the

Home Secretary. The Chief Inspector is delegated a budget which forms part of the

core Department expenditure. The annual inspection programme is published and

an annual report on the work undertaken is laid before Parliament.

35. The College of Policing and the Forensic Archive Limited are government owned

companies. Each has a sponsor team in the core Department

• The College of Policing has an independent Board with a non-executive Chair. The

Chief Executive is the Accounting Officer. The College charges fees for training and

professional development activity. The Company has appointed the NAO as its

external auditor and publishes its accounts.

• The Forensic Archive Ltd has a board of two senior Departmental Officials and the

Executive Director. The Executive Director is the Accounting Officer. The company

operates under a Service Level Agreement with the Home Office. The company

appoints its own independent auditors and publishes its accounts.

https://www.gov.uk/government/organisations/office-of-the-immigration-services-commissioner

http://www.justiceinspectorates.gov.uk/hmic/

http://www.justiceinspectorates.gov.uk/hmic/

http://icinspector.independent.gov.uk/

http://www.college.police.uk/Pages/Home.aspx

http://www.forensicarchive.com/


19

National Crime Agency (NCA)

36. The NCA is a Non-Ministerial Department headed by a Director General (DG) who is

appointed by the Home Secretary. The DG of the NCA is accountable to the Home

Secretary and through the Home Secretary to Parliament but the agency is

operationally independent. The NCA’s DG has direction and control of the NCA, and

this includes the power to decide which operations the NCA should run against which

organised crime groups and how those operations should be conducted. There are a

number of arrangements in place to support the relationship between the NCA and the

Home Secretary which include a jointly agreed Revised Framework Document for the

NCA, published in May 2015. The Home Secretary also sets the NCA’s strategic

priorities which are included in the agency’s annual plan.

37. In general, the NCA Director General has the ability to determine her own approach on

corporate and financial matters without recourse to the Home Office or other

Departments. The NCA has its own estimate, but in order to support the financial

resilience of the agency, this is funded by a reduction in the overall Home Office

Departmental Expenditure Limit (DEL). The Home Office negotiate the NCA’s budget

with HM Treasury, in consultation with the NCA’s DG, as part of the annual Main and

Supplementary Estimates processes and at Spending Reviews. In discussion with the

Home Office, the NCA’s DG is responsible for ensuring that NCA capital investments

represent value for money and are affordable. The NCA’s DG must seek approval from

the Home Secretary for Capital investment above an agreed threshold.

38. A full list of all Home Office Arm’s Length Bodies, with links, is at Annex A.


20

Local Funding Arrangements

Police

How the accountability system for policing and crime reduction works

39. Local Policing Bodies are established in statute, with their responsibilities set out

largely through a framework of legal powers and duties. The Police Reform and Social

Responsibility Act (PRSRA) 2011 requires each Local Policing Body to secure an

efficient and effective police force. Local Policing Bodies are defined as PCCs, the

Mayor’s Office for Policing and Crime (MOPAC) for the Metropolitan Police Service

area, and as of May 2017, the Mayor of Greater Manchester for the Greater

Manchester Police area. The legislation sets out a range of checks and balances on

the actions of Local Policing Bodies, including a statutory oversight and scrutiny

committee – the Police and Crime Panel – made up of representatives of the local

authorities in the police area (or, in the case of MOPAC, the London assembly) and

independent members. Ultimately Local Policing Bodies are accountable for their

decisions and actions to local people at the ballot box.

40. The Revised Financial Management Code of Practice for the Police Forces of England

and Wales and Fire and Rescue Authorities created under section 4A of the Fire and

Rescue Services Act 2004 (the “FMCP”)2 describes the financial governance

arrangements within the police in England and Wales and reflects that Local Policing

Bodies, Chief Constables and Chief Finance Officers have a key statutory duty to

secure value for money.

41. In addition to the responsibilities set out in the PRSRA, the provisions of the Fire and

Rescue Services Act 2004 (as amended by the Policing and Crime Act 2017 Act)3

enable PCCs to assume the functions and duties of the fire and rescue authority(s) in

their area, where a local case is made. On 1 October 2017, the country’s first Police,

Fire and Crime Commissioner (PFCC) was established in Essex, followed by

Staffordshire in August 2018. Further proposals from PCCs have been approved and

are at various stages of implementation. PFCCs are elected to both roles and are

directly accountable to the public for both their policing and fire roles.

42. The Secretary of State has also retained two statutory powers to intervene if they are

satisfied that a Local Policing Body or police force is failing, or will fail, to discharge its

2 The Revised Financial Management Code of Practice for the Police Forces of England and Wales and Fire and Rescue Authorities

created under section 4A of the Fire and Rescue Services Act 2004:

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/727772/CCS207_CCS07180219

68-001_HO_FMCP_2018_Print_.pdf

3 Fire and Rescue Services Act 2004, https://www.legislation.gov.uk/ukpga/2004/21/section/4A

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/727772/CCS207_CCS0718021968-001_HO_FMCP_2018_Print_.pdf

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/727772/CCS207_CCS0718021968-001_HO_FMCP_2018_Print_.pdf

https://www.legislation.gov.uk/ukpga/2004/21/section/4A


21

functions effectively4. As Accounting Officer, I have a personal responsibility to advise

the Secretary of State on the use of these powers in order to secure the proper

stewardship of the resources that have been voted to my Department. I remain

confident that the system is robust.

The allocation and distribution of resources to Local Policing Bodies

43. The Department pays funds to directly elected and locally accountable Local Policing

Bodies for general policing purposes. The Department pays these funds via the Police

Grant Report5 (PGR) under section 46 of the Police Act 1996, which are the aggregate

amount of grants for police purposes. This funding is currently comprised of the Home

Office Police Core Settlement, ex-Department for Communities and Local Government

(DCLG) Formula Funding6, Legacy Council Tax Grants, National and International

Capital City Grants, Precept Grant and Welsh Top-Up. The provisional PGR is subject

to an open consultation on this distribution before it is approved by the House of

Commons each year.

44. Whilst funding is allocated to Local Policing Bodies there are national policing needs

which must also be considered. The Secretary of State is under a statutory duty to

issue a Strategic Policing Requirement (SPR) which sets out what, in his opinion, are

the national threats and what the police need to be able to do to counter those threats.7

The national threats are terrorism, serious and organised crime, a national cyber

security incident, public disorder, civil emergencies and child sexual abuse.

These cross-boundary threats require a collaborative national response. Local Policing

Bodies are under a statutory duty8 to have regard to the SPR when issuing or varying

their police and crime plans. Chief constables are under a statutory duty to have regard

to both the police and crime plan9 and the SPR10 when exercising their functions.

45. In addition to the grant funding to Local Policing Bodies set out in the PGR there is

additional funding used for the benefit of policing, known as “reallocations”. These are

funded from within the police funding envelope agreed with Treasury and typically

support national priorities including police technology programmes and the Police

Transformation Fund. Parliament is informed of the proposed reallocations by Written

Ministerial Statement at the same time as the provisional PGR is published, but the

4 Sections 40 and 40A of the Police Act 1996, http://www.legislation.gov.uk/ukpga/1996/16/section/40

5 Police Grant Report (England and Wales) 2018/19: Police Grant Report https://www.gov.uk/government/publications/police-grants-

in-england-and-wales-2018-to-2019

6 Police Finance Grant Report: Note the ex-DCLG Funding was formerly paid by DCLG (now Ministry for Housing, Communities and

Local Government), but is now part of the Home Office budget.

7 In accordance with s37A (1) Police Act (1996) as amended by s77 Police Reform and Social Responsibility Act (2011). Section 96A

provides additional powers to intervene in respect of the satisfactory performance by forces of their ‘national and international’

functions.

8 s5(5) Police Reform and Social Responsibility Act (2011)

9 s8(2) Police Reform and Social Responsibility Act (2011)

10 s37A(2) Police Act (1996) as amended by s77 Police Reform and Social Responsibility Act (2011)

https://www.gov.uk/government/publications/police-grants-in-england-and-wales-2018-to-2019

http://www.legislation.gov.uk/ukpga/1996/16/section/40



http://www.homeoffice.gov.uk/publications/police/police-finance/grant-report-2013-14


22

House of Commons does not have to directly approve this funding as these are not

section 46 Police Act 1996 grants. Local Policing Bodies also receive funding to

support counter-terrorism policing.

46. In addition to the funding set out above, Local Policing Bodies receive additional

funding from local sources including through the police precept component of council

tax and charging for services such as policing in football stadiums. The most significant

of these additional funding streams is the police precept component of council tax

which was in excess of £3.6bn in 2018/1911. The Local Policing Body sets the local

policing precept level, and the Police and Crime Panel has the power to review and

veto the first proposed precept where a two-thirds majority of members agree to do so.

This funding is locally raised and not administered by the Department. However, in

England, the level of increase in precept bills that is permitted without a local

referendum is set annually by the Ministry for Housing, Communities and Local

Government (MHCLG). A referendum allows local people to approve or veto the

decision before it could be implemented. Council tax in Wales remains a matter for the

Welsh Government.

47. Regularity is secured through effective internal financial controls, exercised by PCCs’

Chief Finance Officers who have a statutory responsibility for ensuring that the financial

affairs of the Local Policing Body are properly administered and comply with all audit

requirements. Under the PRSRA the PCC must ensure an efficient and effective police

force for their area and must hold the chief constable to account for their running of the

force. The Department publishes a Financial Management Code of Practice which

gives guidance on the financial governance arrangements which PCCs and chief

constables must have regard to. This was updated in July 2018 for PCCs who take on

fire governance.

48. Where a Police and Crime Commisisoner is also the fire and rescue authority for an

area, police and fire precepts and funding streams are paid to the PFCC separately

and form two separate budgets. The PFCC must hold a separate police fund and a

separate fire fund. A PFCC’s fire budget cannot be spent on policing, or vice versa,

unless the expenditure is for joint benefit.

Displaying regularity and propriety

49. Local Policing Bodies must answer to their electorates for the spending decisions that

they make.

50. There is a comprehensive framework of financial governance within police forces,

comparable to that of local authorities, which includes primary legislation, secondary

legislation and guidance. The principal local checks on regularity and propriety include:

11 Part 1 Local Government Finance Act 1992 and Part 3 Greater London Authority Act 1999

https://www.gov.uk/government/collections/police-finance#financial-management-code-of-practice


23

• a set of financial duties and rules which require PCCs to act prudently in their

spending (as set out in FMCP);

• Internal checks that the rules are followed through the duties on the Chief Finance

Officers of the Local Policing Body and the Chief Constable respectively; and

external audit by an independent auditor (as summarised in the FMCP);

• A requirement to publish an annual statement of accounts and an Annual

Governance Statement which sets out formal assurances about the governance

process, and is reviewed by the independent auditor;

• Transparency through publication of specified information including spending over

£500 and annual reports, and

• A requirement to publish information requested by the Police and Crime Panel.


24

Figure 7: Police Accountability System Structure12

Achieving Value for Money

At a local level

51. Value for money is assured through a combination of local accountabilities, public

scrutiny underpinned by comparative data, and external scrutiny by external auditors

(to consider whether proper arrangements have been made to secure economy,

efficiency and effectiveness) through the NAO and HMICFRS. PCCs produce public

accounts, and are required to consult the public; like other public bodies they are also

subject to the Freedom of Information Act 2000.

52. PCCs are accountable for setting local priorities and there are a range of checks and

systems in place to provide assurance that they achieve value for money including:

• their democratic mandate ensures they are well placed to judge where resources

need to be allocated to match what communities need;

• a legal duty to ensure the police force is effective and efficient and to hold the Chief

Constable to account for the extent to which he has complied with his value for

money duty;

• the legal duty to carry out a number of functions;

12 12.1 For Wales, the Wales Audit Office replaces NAO. WAO is also the external auditor to the PCC and the Chief Constable.

12.2 HMICFRS and external audit scrutiny of the Chief Constable is scrutiny of the force not the office holder.

12.3 The diagram reflects the arrangement for the police grant allocated via the Police Allocation Formula. Specific grants are also

made to Local Policing Bodies. These ring-fenced grants carry specific accountability lines back to the Department.


25

• scrutiny by the public and the Police and Crime Panel outside of elections, and also

by an independent auditor to satisfy themselves that proper arrangements have

been made for securing economy, efficiency and effectiveness;

• availability of data on performance and on spending, including a legal duty to

publish specific data, and;

• simple and accessible value for money studies by HMICFRS and the NAO.

53. Ultimately democratic accountability creates a strong incentive for the PCC to set,

explain and deliver on their priorities. The PCC will need to communicate to the

electorate how they have achieved the priorities that they have set out.

Through Commissioning

54. Local Policing Bodies may choose to secure public service outcomes through

partnership with other public sector bodies, awarding grants to voluntary bodies or

procuring services from the private sector. In such cases, it is the duty of PCCs (and

directly elected Mayors who hold PCC functions), MOPAC and the Common Council of

the City of London and their Chief Finance Officers to make arrangements that provide

adequate assurance of regularity, propriety and value for money. In the case of

partnership with other public bodies, that assurance is secured by arrangements put in

place by Accounting Officers of the lead departments concerned. Local arrangements

fall within the scope of external audit and transparency reporting.

Her Majesty’s Inspectorate of Constabulary and Fire and Rescue Services

(HMICFRS)

55. HMICFRS’s role is to promote and advance improvements in the efficiency and

effectiveness of policing in England and Wales and fire and rescue services in

England. It achieves this through inspections, monitoring and advice, working in an

independent, professional, transparent, and fair way, championing the public interest

and explaining its actions.

56. HMICFRS’s annual, all-force inspection programme was launched in 2014 and

inspects and reports on police efficiency, effectiveness and legitimacy (PEEL) for all 43

forces. The PEEL programme enables the public to see clearly across a range of

simple categories, how their force is performing. Inspection findings are published

throughout the course of the year, before being brought together in the inspectorates

HMICFRS’s annual “State of Policing” report. The PEEL assessments are convincing

evidence of how HMICFRS ‘shines a light’ on policing outcomes and value for money.

57. In 2018-19, HMICFRS will be integrating the three strands of PEEL, so each force will

receive a single report covering efficiency, effectiveness and legitimacy together. This

will make it easier for the public to access information about their force. At the same

time, the inspectorate will adopt a more sophisticated risk based approach to

inspection, to focus on the areas (forces and issues) of greatest risk.


26

58. HMICFRS’ remit was extended in July 2017 to include the inspection of Fire and

Rescue services in England and Wales. Their inspection regime will focus on three

areas: Operational service delivery, Efficiency and Organisational effectiveness.

HMICFRS’ inspection programme framework for fire & rescue services was laid before

Parliament in Spring 2018.

With the College of Policing

59. Another means of improving value for money at the local level is through the College of

Policing. Central to the work of the College is identifying and sharing good practice and

setting national standards where needed. They are also leading a workforce reform

agenda, which will ensure that police have a more flexible, capable and professional

workforce. The standards and the good practice, which have been fully evaluated by

the College, form the template against which HMICFRS inspect.

60. Part II of the Police Act 1996 (as amended by the Anti-Social Behaviour, Crime and

Policing Act 2014) provides the College with a strong mandate to set standards. The

provisions in the Act give the College the options of preparing police regulations or

issuing codes of practice to help set those standards. These are essential tools to

ensure that the police are in the best position to reform themselves, with the support

and leadership of their professional body. The ‘What Works’ centre within the College

works with a consortium of academic institutions to review research, assess

interventions (why they work and where they work) and provide knowledge tools and

guidance to the police and PCCs. The College are developing a series of toolkits to this

effect to support the sector in areas such as crime prevention. The College are also

establishing Professional Communities. These will comprise networks of practitioners

from across and beyond policing including the academic, public, private and third

sectors to support them in their work to develop national standards and improve

professional practice.

How am I assured the System is working? 61. As Accounting Officer, I need to know that the system I have set out is working and

whether changes are needed. I have a range of sources of information available to me

which enable me to have an overview of the system, which include:

• Regular contact between the Department and individual Local Policing Bodies,

Chief Constables and Chief Executives; to identify issues and provide support,

where required;

• Data on a wide range of activity, for which the Home Office sets transparency

requirements;

• Links to national organisations; the Department is well connected to national

organisations and structures such as; the Association of Police and Crime

Commissioners; Local Government Association; Association of Policing and


27

Crime Chief Executives; National Police Chiefs’ Council; Police Superintendents

Association, and the Police Federation;

• Regulators; The NAO carry out around five thematic value for money studies

across the local government sector each year, which will periodically include

policing. The NAO have a right of access to the Home Office and to Local

Policing Bodies. Whilst this right does not extend to forces, the NAO can

consider how these bodies interact;

• Inspectorate: HMICFRS has a statutory remit to inspect and report to the

Secretary of State and to Parliament on the efficiency and effectiveness of

policing in England and Wales. It also publishes Value for Money profiles for all

forces and has encouraged forces to produce Force Management Statements.

The inspectorate inspects forces, and anyone delivering an operational policing

function, but cannot inspect Local Policing Bodies; and

• External audit reports; the NAO, Financial Reporting Council, and professional

bodies oversee an external audit framework, which mirrors the regulatory roles

within the companies audit sector.

Local Scrutiny

62. Local Policing Bodies are accountable to the local electorate for the discharge of their

functions. This is complemented by robust transparency arrangements, which provide

an incentive on the Local Policing Body to ensure propriety, value for money and

resilience. This approach provides adequate safeguards for the efficient and effective

use of public funds in all but extraordinary circumstances.

63. A number of Local Government regulations have been applied to the Police and Crime

Panels (PCPs) to ensure that they operate in much the same way as existing local

authority committees. This includes meetings taking place in public (some exceptions

exist) and the publication of minutes and agendas.

64. PCPs perform a statutory oversight and scrutiny function in respect of Local Policing

Bodies, ensuring that information is available for the public to support the democratic

process. PCPs have a key role to play in the appointment of Chief Constables and the

setting of the policing precept, both of which the panel can veto with a two-thirds

majority. Panels also hold confirmation hearings for important staff – Chief Executives

and Chief Finance Officer and for any Deputy PCC.

65. The PCP must publish all reports and recommendations that it makes to the Local

Policing Body, which is required to publish their responses to these. The PCP must

hold a public meeting to discuss the annual report and to question the Local Policing

Body about any concerns they may have.

66. The PCP has other specific powers including:

• Asking HMICFRS for a professional view if the Local Policing Body plans to dismiss

the Chief Constable. In cases of dismissal (forced resignation or retirement) the


28

panel must hold a scrutiny hearing and make a recommendation to the Local

Policing Body;

• Appointing an acting Local Policing Body if the elected Local Policing Body cannot

carry out their role for health reasons, resigns or is disqualified;

• Holding confirmation hearings for the Chief Executive and Chief Finance Officer and

for any deputy. The panel have no power to refuse appointments but could make a

recommendation to the Local Policing Body;

• Monitoring complaints against the Local Policing Body and dealing with non-criminal

complaints; and

• Asking to see any papers the Local Policing Body has, requiring the Local Policing

Body (and their staff) to attend a PCP meeting to answer questions; asking the

Chief Officer of Police to attend any meeting which the Local Policing Body is

required to attend.

67. The powers held by panels allow them to scrutinise the decisions made by Local

Policing Bodies and provide an important check on the power of Local Policing Bodies.

The Home Office produced a guide setting out all the secondary legislation that applies

to PCPs and has issued guidance to sit alongside that legislation.13 The Local

Government Association, in Association with the Centre for Public Scrutiny, have also

produced guidance on the role and composition of PCPs.14 The Home Office

continues to work with the Local Government Association to ensure PCPs have the

guidance and support required.

Transparency

Specified Information:

68. Section 11(1) and (2) of the PRSRA 2011 requires an elected Local Policing Body to

publish any information specified by the Secretary of State by Order. The Secretary of

State may also specify by Order the time and manner of publication. The details of the

information required to be published under the Elected Local Policing Bodies (Specified

Information) Order (Amended) 2012 includes:15

• The total budget of the elected Local Policing Body;

• Information as to each item of expenditure by the Local Policing Body exceeding

£500 (other than a crime and disorder reduction grant), including the recipient of the

funds, the purpose of the expenditure and the reasons why the body or the chief

officer considered that value for money would be obtained;

13 A table setting out a list of secondary legislation and related guidance relevant to the operation of police and crime panels in England

and Wales: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/117478/pcp-

secondary-legislation.pdf

14 Local Government Association, Police and crime panels, Guidance on role and composition:

https://www.local.gov.uk/sites/default/files/documents/police-and-crime-panels-g-9d4.pdf

15 Elected Local Policing Bodies (Specified Information) Order (Amended) 2012

http://www.legislation.gov.uk/ukpga/2011/13/section/11/enacted

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/117478/pcp-secondary-legislation.pdf

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/117478/pcp-secondary-legislation.pdf

https://www.local.gov.uk/sites/default/files/documents/police-and-crime-panels-g-9d4.pdf

http://www.legislation.gov.uk/ukpga/2011/13/section/11/enacted


29

• Information as to each crime and disorder reduction grant made by the Local

Policing Body;

• The salary of each senior employee; and

• A copy of each contract with a value exceeding £10,000 to which the Local Policing

Body or the chief officer is or is to be a party.

69. The Order ensures that the relevant information on expenditure is available to the

public, who can then make an informed decision on whether the Local Policing Body

has made best use of public funds, and hold them to account at the ballot box. It is the

responsibility of the Chief Executive from each Local Policing Body’s office, in their

capacity as “monitoring officer” to ensure the Office of the Local Policing Body meets

legal requirements, including ensuring compliance with the Order. The Home Office

continues to work with the Association of Police and Crime Chief Executives (APACE)

to assist them in meeting their statutory requirements under the Order.

Public Accessibility:

70. The Home Office runs a website, Police.uk, which provides the public with easy access

to information about crime, anti-social behaviour and justice outcomes in their local

area. The public can also see how crime rates and policing costs in their area compare

with those in other similar areas.

71. Users can also find information about their Local Policing Body, via their website,

through which they can acquire a copy of their Annual report which highlights progress

made against the Local Policing Body’s strategic objectives from his or her Police and

Crime Plan and a summary of financial information for that year.

72. In addition, HMICFRS inspection reports give the public a clear, independent, view of

the quality of policing in their local area. The public can use this information to

challenge their local force and, through their Police and Crime Commissioner, hold it to

account.

Severance Payments:

73. Under the Accounts and Audit (England) Regulations 2011, Local Policing Bodies are

required to publish details of individual severance payments in relation to Chief

Constables and other senior police officers earning over £150,000 (and to name those

officers). The situation is mirrored in Wales in separate regulations.

Whistleblowing:

74. The staff of the Local Policing Body or Chief Officer of Police have a key role in

flagging any wrong-doing. A member of staff can contact the auditor, who could

investigate any value for money or fraud concerns. They can also contact the force

Professional Standards Department or the Independent Office for Police Conduct about

conduct of police officers and staff, the Local Policing Body about conduct of the Chief


30

Constable and the Police and Crime Panel or the Independent Office for Police

Conduct about conduct of the Local Policing Body. Employees who become “whistle-

blowers”, as in other businesses or agencies, are protected from dismissal or adverse

treatment by the Public Interest Disclosure Act 1998. For a disclosure to an external

body to be protected, it must usually be made to the appropriate regulatory body, as

set out above.

75. The challenging and reporting of improper conduct is one of the ten standards of

professional behaviour for police officers, as provided by Schedule 2 of the Police

(Conduct) Regulations 2012, which require that police officers report, challenge or take

action against the conduct of colleagues which has fallen below the standards of

professional behaviour. Breach of these standards can lead to disciplinary action.

Further, police officers and staff are protected by the Employment Rights Act 1996 in

relation to “protected disclosures” (whistle blowing).

How the System responds to failure?

76. Clarity on the roles and responsibilities achieved by the PRSRA, as well as the

supporting legislative documents such as the policing protocol and the FMCP, mean

that robust incentives, as well as the necessary checks and balances are available

locally to identify and air local failures, if they occur.

77. The Secretary of State possesses backstop powers by virtue of sections 40 and 40A of

the Police Act 1996. These allow him to direct Local Policing Bodies to take action in

cases of systemic failure on the part of the police force or the body itself. Ultimately,

drawing on advice from HMICFRS, external audit reports, and other sources, I may

advise the Secretary of state to make use of these backstop powers.

78. Further to the above general powers, the Secretary of State may, if he sees fit, use

additional powers by virtue of the Police Act 1996 and the PRSRA to:

• Direct HMICFRS to look into and report on any issue;

• Give direction to a Local Policing Body in cases of systemic failures / danger or

effective and efficient policing not being delivered;

• Intervene where force budgets are set too low and threaten the capability of the

Chief Officer to provide basic policing;

• Require any Local Policing Body to enter into agreements over national and

international policing responsibilities;

• Specify some functions that all forces must perform in collaboration/co-operation

with other forces or other bodies;

• Mandate or terminate collaborations between forces and/or between Local policing

bodies;

• Mandate mutual aid agreements to meet special demand on resources (e.g.

Commonwealth Heads of Government Meeting 2018, and


31

• Prescribe that certain services and equipment are procured under specific

arrangements (e.g. nationally).

Fire

How the accountability system for fire and rescue authorities works

79. As local authorities, the Local Government Accountability Framework set out in Annex

A of the Ministry for Housing, Communities and Local Government’s (MHCLG)

Accounting Officer System Statement applies also to fire and rescue authorities. The

MHCLG Accounting Officer is directly accountable for ensuring regularity, propriety and

value for money in the distribution of the budget for local authority core funding. They

are also accountable for the framework that determines the sums payable to and from

local authorities under business rates retention which came into effect in April 2013.

Other departmental accounting officers are accountable for the distribution of grants

from their budgets to local government to support delivery of other policy areas. Other

government departments, including the Home Office, that rely on local authorities to

deliver policy objectives or services are responsible for understanding demand, costs

and the scope for efficiency in those policy areas for which they are accountable. Each

department is responsible for establishing its own arrangements to ensure that services

remain sustainable and that statutory responsibilities are being met.

80. There is an assurance programme to ensure that the National Resilience capabilities

remain fit for purpose through a ‘lead authority’ model, undertaken by Merseyside Fire

and Rescue Authority. This assurance is undertaken, as necessary, for example by

surveys of activity, exercises, and assessment. Following a process of devolution, the

Home Office transferred its National Resilience contracts (e.g. New Dimensions

maintenance contract, and the central training contract) to the lead authority. The

Home Office still holds the Firelink contract; fire and rescue authorities are grant-

funded for this under the new burdens principles.

81. The Secretary of State has a power of intervention should it be considered that a fire

and rescue authority is failing or is likely to fail to act in accordance with the Fire and

Rescue National Framework (section 22 and 23 of the Fire and Rescue Services Act

2004). In exercising these powers, the Secretary of State is required to have regard to

an intervention protocol, the Protocol on Government Intervention Action on Fire and

Rescue Authorities in England, updated in 2018 as an Annex to the Fire and Rescue

National Framework for England. In addition, as a last resort, the government has

powers to investigate and intervene based on councils’ best value duty. If an

inspection identifies a failure or very high risk of failure, to comply with the best value

duty, under section 15 of the Local Government Act 1999 the Secretary of State has

powers to intervene. As Accounting Officer, I have a personal responsibility to advise

the Secretary of State on the use of these powers in order to secure the proper

stewardship of the resources that have been voted to my Department. I remain

confident that the system is robust.


32

The allocation and distribution of resources to fire and rescue authorities

82. Fire and rescue authorities receive their funding from several sources such as grants

from central government; a share of business rates from relevant billing authorities in

their area, a precept on council tax, and locally generated income (e.g. fees from

certain activities, such as training). Government grant and business rates for fire are

distributed via the Local Government Finance settlement which is administered by the

MHCLG.

83. As part of the local government settlement, for which the MHCLG Accounting Officer is

accountable, core funding (including revenue support grant and business rates) is

allocated to all local authorities, including fire and rescue authorities. Single-purpose

fire and rescue authorities (excludes London, Manchester and the 15 fire and rescue

services provided by a county council or unitary authority) receive fire specific funding,

whereas the county, unitary and mayoral authorities receive funding for all of their local

government responsibilities. Single-purpose fire and rescue authorities will receive

£1.285 billion of core spending power under the 2018-19 settlement, of which 40%

(£513 million) is revenue support grant and business rates baseline (plus related

compensation grants) and Rural Grant, with further funding provided from council tax.

Where fire and rescue services are within a county council or unitary authority, the

parent authority is provided with a non-ringfenced grant for all their local government

responsibilities, and it is a matter for the authority to determine the level of funding

provided to deliver fire and rescue services in their area.

84. The final revenue funding amount for each fire and rescue authority is dependent on

the amount of business rates collected and paid to each individual fire and rescue

authority by its relevant billing authorities under the business rates retention scheme.

85. As Accounting Officer for the Home Office I am responsible for the budget to deliver

Department-specific fire and rescue programmes which amount to approximately £66

million in 2018-19, excluding Private Finance Initiative funding of £31.6 million. Funding

covers National Resilience programmes which support fire and rescue authorities in

delivering a sustained, effective response to major incidents, emergencies and

disruptive challenges. These include grants for Firelink and New Dimensions.

How am I assured the System is working?

86. As Accounting Officer, I need to know that the system I have set out is working and

whether changes are needed. I have a range of sources of information available to me

which enable me to have an overview of the system, which include:

• Regular contact between the Department and individual fire and rescue authority

Chairs, Police, Fire and Crime Commissioners, chief fire officers and other


33

representatives of the fire and rescue sector; to identify issues and provide support,

where required;

• Data on a wide range of activity, for which the Home Office sets transparency

requirements;

• Self declaration by fire and rescue authorities: the Fire and Rescue National

Framework for England requires fire and rescue authorities to issue an annual

assurance statement providing assurance for how they have complied with the

requirements of the Framework. The Secretary of State is required on a biennial

basis to provide assurance to Parliament of this compliance.

• Links to national organisations; the Department is well connected to national

organisations and structures such as: the National Fire Chiefs Council; the Local

Government Association; the Association of Police and Crime Commissioners; and

fire representative bodies such as the Fire Brigades Union.

• Regulators; The NAO carry out around five thematic value for money studies across

the local government sector each year, which will periodically include fire & rescue

authorities.

• Inspectorate; As part of the Government’s fire reform programme, HMICFRS was,

in July 2017, given responsibility to inspect and report to Parliament on the

efficiency and effectiveness of fire and rescue services in England. The first

inspection reports will be published by late 2018; and

• External audit reports; the NAO, Financial Reporting Council, and professional

bodies oversee an external audit framework, which mirrors the regulatory roles

within the companies audit sector.

Local Scrutiny

87. Fire and rescue authorities are responsible for ensuring that their fire and rescue

service is performing its functions properly, is delivered efficiently, and in their

communities’ best interests. They are therefore accountable for their actions and their

performance. Fire and rescue authorities operate with a range of different locally

determined governance arrangements including an individual – either a police, fire and

crime commissioner (PFCC) or a mayor – having sole responsibility for being the fire

and rescue authority for an area.

88. Each fire and rescue authority has a statutory duty to ensure provision of their core

functions as required by the Fire and Rescue Services Act 2004.

89. Each fire and rescue authority will appoint an individual – commonly known as a Chief

Fire Officer – who has responsibility for managing the fire and rescue service. This role

does not have to be operational but includes managing the personnel, services and

equipment secured by the fire and rescue authority for the purposes of carrying out

functions conferred on it by the Fire and Rescue Services Act 2004, Civil

Contingencies Act 2004, and other enactments. Each fire and rescue authority must

hold this person to account for the exercise of their functions and the functions of

persons under their direction and control.


34

90. The chief fire officer must, in exercising their functions, have regard to the fire and

rescue authority’s Integrated Risk Management Plan and any set objectives and

priorities which may be outlined in a strategic plan. The fire and rescue authority should

give due regard to the professional advice of the Chief Fire Officer while developing the

Integrated Risk Management Plan and when making decisions affecting the fire and

rescue service.

91. Where a PCC takes on responsibility for fire, the remit of the police and crime panel is

extended to include the scrutiny of the PFCCs fire and rescue functions and is known

as a Police, Fire and Crime Panel (PFCP). This includes a role in the appointment of

the Chief Fire Officer and setting of the fire precept. The PFCP can refresh its

membership to ensure it has the relevant fire and rescue expertise.

92. The Fire and Rescue National Framework for England requires fire and rescue

authorities to have governance and accountability arrangements in place covering

issues such as financial management and transparency, complaints and discipline

arrangements, and compliance with the seven principles of public life. In demonstrating

their accountability to communities for the service they provide, fire and rescue

authorities also need to: be transparent and accountable to their communities for their

decisions and actions; provide the opportunity for communities to help to plan their

local service through effective consultation and involvement; and have scrutiny

arrangements in place that reflect the high standard communities expect for an

important public safety service.

Transparency

Specified Information:

93. Each fire and rescue authority must comply with their statutory transparency

requirements. The nature of the requirements is dependent on the legal basis of the

authority; for example, combined fire and rescue authorities are subject to the Local

Authority Transparency Code 2015 while Police, Fire and Crime Commissioners must

comply with requirements under section 11 of the PRSRA and the Elected Local

Policing Bodies (Specified Information) Order 2011. All fire and rescue authorities

should therefore publish certain information, including: senior salaries; register of

interests; staffing; income and expenditure; property; rights and liabilities; and

decisions of significant public interest. Fire and rescue authorities must make their

communities aware of how they can access data and information on their performance.

94. Furthermore, section 26 of the Fire and Rescue Services Act 2004 states that a fire

and rescue authority must: a) submit to the Secretary of State any reports and returns

that are required; and b) give the Secretary of State any information with respect to its

functions that are required.


35

95. Fire and rescue authorities also have a responsibility to provide regular data to the

Home Office as stipulated by MHCLG’s Single Data List process. The data supplied

are the source for the official and national statistics published by the Home Office and

are used for the purposes of policy development across a range of organisations

including Government as well as providing a publicly available national overview of

activity by fire and rescue services.


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Third Party Delivery Partnerships

96. The Home Office has developed partnerships with 3rd parties to deliver its policy

objectives, however none are so significant that the Department is dependent on them

to deliver core parts of the Department’s business and are generally managed by a

commercial arrangement.


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Grants to Private and Voluntary Sector Bodies

97. Grants (excluding Grant in Aid) are accounted for on an accruals basis and are paid as

a reimbursement against expenditure that the grant recipient has already made. Grant

in Aid is a funding mechanism to finance all or part of the costs of the body receiving

the Grant in Aid.

Main Police Grants

98. Police grants paid by the Department to Police and Crime Commissioners are based

on funding levels agreed in the Police Grant Report (England and Wales) 2017-18.

Police Pensions top-up grant

99. The amount reported as the Police Pensions top-up grant is equal to the difference

between outgoing pension expenditure and incoming pension contributions in a single

year. An accrual is recognised in the Department’s financial statement for the

estimated amount of grant relating to the year, which has not been paid by year-end.

100. The Home Office provides assurance for its Accounting Officer by mandating

appropriate systems (i.e. processes and controls) which ensure that all grant awards to

third parties are made in accordance with the Minimum Standards, and used for the

purpose(s) intended.

Figure 8 – Home Office Grants

2017-18 Resource and Capital grants

£m

Resource Grants 9,217.29

o/w Police formula grant 7,882.76

Capital Grants 267.89

o/w Police formula grant 45.9

101. The Department has robust checks and balances in place to ensure that

competition is the principal consideration when awarding grants, and where direct

awards are proposed that justification is documented and approval sought from staff

with appropriate delegated commercial authority; due diligence and fraud/risk

assessments are undertaken of recipients before grants are awarded; and, outcomes

achieved are monitored against agreed critical success factors and signed off before

https://www.gov.uk/government/consultations/provisional-police-grant-report-2017-to-2018


38

payments are made.

102. Details of grant awards are loaded on the Cabinet Office’s Government Grant

Information System (GGIS), except in a few cases where grants are deemed sensitive,

for example because of National Security.

103. The standard Home Office grant award processes were self-assessed for

compliance with the minimum grant standards (Cabinet Office Standards). Cabinet

Office has advised that the Home Office is adhering to their policies and processes and

is fully compliant with the ten grant standards.

104. This approach provides assurance that regularity, propriety and value for money

underpin all grant awards. Furthermore, the Department continues to keep abreast of

future developments from the Cabinet Office grants function, for example by attending

the Best Practice Network.

https://www.gov.uk/government/publications/government-grants-register

https://www.gov.uk/government/publications/government-grants-register

https://www.gov.uk/government/publications/grants-standards

https://www.gov.uk/government/publications/grants-standards/grant-standards


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Major Contracts and Outsourced services

105. The Home Office secures value for money through its contracts by applying a

proportionate, risk based, approach to contract management, as follows:

• A Supplier Management Policy and Contract Management Manual, which complies

with best practice across government, and is accessible by all staff.

• Clearly defined roles & responsibilities.

Business and commercial staff have clearly defined roles that are set out in a

primary level service agreement that is held between Capabilities and

Resources and the various Business Director General Commands.

All business areas have a Commercial Specialist Business Partner whose

primary role is to ensure contract management is adequate and ownership rests

at the right level.

An Associate Commercial Specialist is responsible for deciding proportionality of

contract management within the policy.

Each contract has a Senior Business Contract Owner or Business Contract

Owner responsible for operational contract monitoring and a commercial

contract manager with delegated authority responsible for commercial contract

management including contract changes.

• Visibility of contracts, management responsibilities and key information is provided

for all contracts above £10,000 through the Commercial Dashboard. Information

held to each includes: contract description, supplier, level, values, contract

manager, business contract owner, values, Contract Change Notices, and a heat

map which tracks performance, risk, relationships, payment, contract development,

contract management plans, contingency plans, joint risk registers, and criticality.

• Supplier/contract segmentation enables the application of Home Office policy to a

particular contract and its management. Strategic contracts are identified as Level

1, business critical as Level 2 and the rest as Level 3.

Level 1 is subject to the full rigours of contract management, including the

application of the Supplier Management Policy with its Executive Oversight

Board process.

Level 2 is a proportionate approach based on Level 1 including use of the heat

map, and that joint risk registers and contingency plans must be held.


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Level 3 requires at least a contract management plan to set out: commercial

support for advice and contract changes; and, aspects from Levels 1 or 2 at the

discretion of the relevant Associate Commercial Specialist.

• Contractual outcomes are secured through three levels of assurance:

First, through the relevant business/operations line management who report to

their Director General;

Second, through the Commercial Specialist Business Partner teams, reporting

to the Chief Commercial Officer; and

Third, through risk-based internal audit, which provides an independent

examination of contract management arrangements.

• Continuous improvement of Home Office contract management is achieved through

Commercial Improvement Plans (CIP), details of which are held and monitored

centrally by the Commercial Policy & Strategy team with an escalation process.

the Commercial Policy & Strategy team, which collaborates within and outside

the Commercial Directorate. Improvements come back to Commercial Specialist

Business Partner teams for delivery. CIPs may arise as a consequence and

include initiatives by Commercial Directorate staff, internal audit review, NAO

recommendations or adherence with the Government Commercial Operating

Standards.

106. The Home Office currently has 42 contracts with a current whole life value of over

£40m, managed via the Strategic Level 1 contract management process.

• Governed by quarterly Executive Oversight Board meetings, reviewing

engagement across the HO Group and the status of the relationship from the

perspective of both parties, investigating cost saving opportunities, new

innovations and ensuring a shared understanding of key risks.

• Senior (SCS) Level Commercial attendees, together with the Senior

Business Contract Owner and where relevant the Crown Commercial

Representative.

107. The Top 10 contracts are detailed in the table below:

Figure 9 – Top 10 Home Office contracts

No Business

Area

Programme /

Agreement Name

Contract / Service

Description

Contractor Whole

Life Value

(£m)

Annual

Value

(£m)

1 Emergency

Services

Network

Public Safety Radio

Communications

Service

Public Safety Radio

Communications

Service

Motorola £4,442 £257

2 Immigration

Enforcement

Immigration Removal

Centres

Management of IRCs MOJ / Mitie / GEO

/ G4S / Serco

£726 £89

3 UK Visas &

Immigration

COMPASS Asylum Support &

Accommodation

G4S / Serco /

Clearel

£611 £115

https://www.gov.uk/government/publications/commercial-operating-standards-for-government

https://www.gov.uk/government/publications/commercial-operating-standards-for-government


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4 UK Visas &

Immigration

VISA Application

Centres

National Government

Outsourced Visa

Centres

VF Holdings /

Teleperformance

£434 £84

5 HMPO Passport Design &

Production (PDP)

Passport Production &

Personalisation

De La Rue £415 £41.5

6 UK Visas &

Immigration

Support Payments to

Eligible Service Users

Payments failed asylum

seekers and those

leaving the UK under

voluntary returns

programmes

Sodexho

Motivation

Solutions Ltd

£406 £75.6

7 HMPO Application &

Enrolment

IT Contract for Provision

of Passport Application

Services

CSC £395 £39.5

8 Digital Data &

Technology

IT2000 Managed service for

desktop across the HO

estate

Fujitsu £350 £47

9 Immigration

Enforcement

Escorting & Related

Services

Secure Escorting for

Immigration Offenders

Tascor £310 £43

10 Digital Data &

Technology

Immigration at the

Border

IBM £272 £15

108. Home Office is committed to the Treasury’s Transparency agenda and as such,

publishes contract details on the pan government Contracts Finder portal.

https://www.gov.uk/contracts-finder


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Investments, Joint Ventures and Other Assets

109. The Home Office does not own any shares or other investment structures in third

party businesses, either within the public sector or outside it. This includes:

• Public Corporations

• Minority shareholdings

• Joint Ventures

• Government Owned Companies

• Publicly owned assets

• Historic Buildings

• National Collections

Further information can be found in the Home Office Annual Report.




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Annex A - Home Office Arm’s Length Bodies

The entities within the Departmental boundary during 2017-18 were as follows:

Entities consolidated

The Home Office departmental boundary encompassed the central Government

Department and five Non-Departmental Public Bodies (NDPBs). The accounts of these

entities form part of the Home Office’s consolidated financial statements.

Executive NDPBs: The Home Office departmental boundary encompassed the central

Government Department and five Non-Departmental Public Bodies (NDPBs). The

accounts of these entities form part of the Home Office’s consolidated financial

statements.

Disclosure and Barring Service

Independent Office of Police Conduct (formerly Independent Police Complaints

Commission)

Office of the Immigration Services Commissioner

Security Industry Authority

Gangmasters and Labour Abuse Authority (formerly Gangmasters Licensing Authority)

The accounts of the above NDPBs can be found at http://www.official-documents.gov.uk.

Other Entities:

College of Policing

The College of Policing is a company limited by guarantee. It is classified as an Arm’s

Length Body by HM Treasury, and is consolidated within the Departmental boundary as a

NDPB.

Entities within the Core Department:

http://www.official-documents.gov.uk/


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Advisory, tribunal and other NDPBs do not publish accounts as they do not have any

money delegated to them. Where there are costs, these are met from Home Office

budgets.

Advisory non-departmental public bodies: provide independent, expert advice to

ministers on a wide range of issues.

The Advisory Council on the Misuse of Drugs

Animals in Science Committee

Migration Advisory Committee

Biometrics and Forensics Ethics Group

Police Advisory Board for England and Wales

National Crime Agency Remuneration Review Body

Technical Advisory Board

Tribunal non-departmental public bodies: have jurisdiction in a specialised field of law.

Investigatory Powers Tribunal

Office of Surveillance Commissioners

Police Discipline Appeals Tribunal

Other:

The Office of the Independent Anti-Slavery Commissioner

The Office of the Person appointed under sections of the Proceeds of Crime Act 2002

The Office of the Commissioner for the Retention and Use of Biometric Material

The Office of the Forensic Science Regulator

HM Inspectorate of Constabulary

Office of the Chief Inspector of the UK Border Agency

Independent Family Returns Panel


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The Office of the Independent Reviewer of Terrorism Legislation

The Office of the Surveillance Camera Commissioner

The Office of the Independent Monitor for the purposes of Part 5 of the Police Act 1997

Office of the Intelligence Services Commissioner

Investigatory Powers Commissioner’s Office

Police Remuneration Review Body

The National Crime Agency is outside the departmental boundary and is not consolidated

in the Annual Report and Accounts but its operations are mentioned because the Home

Office has a policy remit for the Agency.

ISBN: 978-1-78655-415-4

Documents

Home Office Accounting Officer - gov.uk · departments and agencies. Ministers also look to the department’s Accounting Officer to delegate within the department to deliver the